CASE STUDY ON PERMITTING SOLAR ON FEDERAL LAND IN CALIFORNIA THE CALICO SOLAR PROJECT Felicia Bellows Claremont College February 24, 2011

2 BACKGROUND Have worked in energy since 1984 for the most part Grew up in finance at utilities Went into development when the market for my company’s energy tanked, and I had to find a new market Have worked in dirty and clean technologies, but now feel strongly about exclusively clean technologies From early 90’s until 2009 worked and lived in Latin America. Energy market much more dynamic at that time. Have done hydro, small hydro, biomass, wind, solar, gas and coal. Have also worked on the distribution side. Do work from making copies to sitting on boards. In 2009 began solar journey with Tessera Solar and Calico Solar

3 SOLAR TECHNOLOGIES Tessera Solar (Stirling Energy Systems’ SunCatcher K Road Power (Technology agnostic, but really PV) Torresol Energy (Trough & Power Tower)

4 HISTORY OF CALICO SOLAR Began work on identifying site in 2004/2005 Agricultural land not considered due to size necessary for efficiency, cost & possible backlash Worked with BLM Barstow field office BLM viewed site as low potential for conflict with other resources (biology, cultural, OHV, etc) Favorable site characteristics: Adjacent to SCE transmission lines with both existing capacity and potential for upgrade Adjacent to SCE’s Pisgah substation; first in CAISO transmission queue at this location Adjacent to Interstate-40, for easy access Significant site disturbance BNSF railroad bisects site In a utility corridor with 8 pipelines that run through the site Are was previously used as grazing land, Old mine on site, an old well on site and various BLM open routes Calico Site Boundary Substation Existing 220 kV Lines. One line will be upgraded to 500kV for Phase II 500 kV Lines

5 CALICO SOLAR – ORIGINAL 8,230 ACRES

6 TECHNOLOGY TO BE DEPLOYED Stirling Energy Systems SunCatcher A solar thermal technology Highlights include: Made in America Minimal grading Ability to build on up to a 10% slope Modularity allows for building around land features Once built, vegetation between rows can grow back and under SunCatchers can grow back to a low level Low water usage

7 IMPLICATIONS OF USING CSP TECHNOLOGY IN CALIFORNIA Thermal energy is permitted in California by the California Energy Commission (CEC). Thus, Calico needed to undergo a dual permitting process…..BLM & CEC. Negotiated and executed a joint permitting MOU between the BLM & CEC to facilitate the process. Began Application for Certification (AFC) process at CEC jointly while developing POD with BLM. As result, had various agencies involved: CEC BLM USFWS CDFG Some regional boards County of San Bernardino

8 KEY ELEMENTS Siting Surveys and Studies Special Status Species Hydrology Filing with Agencies BLM: SF-299 and Plan of Development CEC: Application for Certification Required submittals Resource Areas Workshops Lease Mitigation Heavy duty costs involved amounting to double digit millions Negotiation with the REAT and the individual agencies throughout the process

9 PERMITTING ISSUES AND CHALLENGES Joint CEC – BLM process Agencies produced joint draft NEPA/CEQA documents, but separate final documents CEC litigation model doesn’t sync well with BLM processing CEC document is staff testimony – limits ability to cooperate, coordinate with BLM and limits ability to share workload CEC ex parte rules limit both Commissioners’ ability to manage staff and applicants’ ability to negotiate with staff Biology/Habitat Survey protocols change over time – and with new information can come new conflict Catellus Lands Original site include ~1,100 acres of former railroad lands – but no conservation easements BNSF Three years of productive engagement with BNSF turned sour when new personnel became involved Cost & Time Mitigation Rent – BLM rents set at more than double the cost of private land Multiple rounds of bio and botany surveys Two years from permitting start to finish – despite fast track

10 CALICO SOLAR PROJECT SITE TODAY……. WHAT HAPPENED???? NORTH

11 PROJECT MODIFICATIONS Drivers of site reductions – largely biology Original surveys showed moderate number of Desert Tortoise but 2010 surveys per new FWS protocols revealed significantly higher numbers Other species of interest on or near site Bighorn sheep in mountains to north of site Mohave fringe-toed lizard White Margined Beardtongue in ACEC to east of site Successive rounds of project modifications in response to agencies and environmental groups concerns Original 8,230 acre site First reduction to 7,000 acres to minimize use of Catellus land Second reduction to 6,215 acres to create desert tortoise movement corridor along north and east of site, avoid concentrations of sensitive plants, and avoid cultural resources Third reduction to 4,613 acres to minimize impacts on Desert Tortoise and move off of highest quality habitat Output of site reduced from 850 MW to MW

12 CALICO SOLAR – DESERT TORTOISE

13 LESSONS LEARNED (1) Site selection is paramount in reducing conflict during permitting process But limited information means uncertainty Desk top surveys are simply not enough to guide in siting and protocol survey are expensive and may be impractical to conduct prior to site selection Processes like DRECP and BLM’s Solar PEIS can help by providing high-level environmental review and identifying preferred areas for projects But this site is a BLM Solar Energy Study Area! BLM land is as expensive as agricultural land BLM rent policy significantly above market rates Agricultural land is more attractive to environmentalists today, but could swing the other way due to societal concerns with loss of farm land Mitigation costs are significant Plan on 3:1 mitigation Still lots of work to do implementing SB 34 in-lieu mitigation

14 LESSONS LEARNED (2) CEC permitting means micromanagement of construction and operations Hundreds of pages of conditions of certification Pre-construction compliance work is an enormous task – start early Maximize flexibility Expect negotiations over project configuration and request adequate land to make changes Relationships matter Engage stakeholders early and build support Agencies, county, third-parties, etc

15 SUMMARY Calico Solar permitting process has been extremely dynamic One of the most complicated negotiations ever Challenging on many fronts A success What will happen next at Calico Solar?!